In the 24 hours since its last update, Polkadot saw a 44% jump in its charts. DOT has seen a 7% value increase over the last week. This is despite being optimistic. At the moment, bulls are holding on to price momentum. The bulls gained strength after breaking through the $8 resistance.
A positive technical outlook for DOT also indicated a price increase. Altcoin buying strength has been increasing, contributing to the price rise. Polkadot would find it easy to surpass its next resistance level if the market continues to be consistent.
Altcoins were positively affected as Bitcoin’s price movements continued northwards. It was now trading at $23,000 above its previous high. Currently, bulls try to preserve the recovery mode that DOT showed on its chart. Today, the global cryptocurrency market is worth $1.14 Trillion. 0.6%In the past 24 hours, there has been a negative shift.
Polkadot Price Analysis: Four Hour Chart
At the time this article was written, DOT traded at $8.20. Altcoin managed to surpass its $8 resistance level. The market has become more bullish due to this. Also, the demand has helped to boost the price of the coin.
The altcoin’s overhead resistance was $9. If DOT can trade above this level, then it may soon reach the double-digit price range. If the price drops below its current level, however, it will land at $7.20 at first and then $6.87 at second. The amount of Polkadot that was traded during the last session decreased slightly, which could indicate that sellers might want to enter the chart.
On a shorter timeframe, altcoin was extremely bullish. Recently, it traded in the “overbought” zone after the altcoin staged an impressive rally within the past 7 days. The selling strength is now at an all-time high as the buying strength remains positive.
Although the Relative Strength Index showed a slight decrease in buying pressure, it is still much higher than the selling pressure. The 20-SMA level was crossed by Polkadot, which is a signal that buyers are driving altcoin’s price momentum. Also, the DOT index was above the 50 and 200 SMAs. This indicates that there is increased market demand.
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DOT’s technical outlook reflected a surge in demand on the four hour chart. A Moving Average Convergence divergence measures the price momentum, and the possibility of a shift in the price action. MACD experienced bullish crossover, resulting in green histograms that were higher than the half-line. This indicates bullishness or a buy signal.
Directional Movement Index is a measure of price direction and chart movement. The +DI line was higher than the -DI. This indicated that DMI was positive. The Average Directional Index (Red), which was higher than the 40-mark, indicated that current price action is strong.
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Featured image by Invezz. Chart from TradingView.com